The bank noted that Bitcoin, as well as stablecoins such as USDC provide a cost-effective solution for cross-border transactions, eliminating the need for high fees and inefficiencies associated with traditional or legacy networks that have been slow to adapt to the technology available.
Xapo Bank recently became the world's first private bank to integrate with the Lightning Network, enabling its members to make lightning-fast Bitcoin payments at significantly lower fees.
According to its statement, Xapo Bank views stablecoins as a logical step in the evolution of "payments infrastructure” technology.
"Stablecoins are a part of this transformation if we talk about the internet of data evolving and maturing to blockchain infrastructure that represents and enables an internet of value," the bank said.
The bank's industry leading crypto innovation coincides with the growing acceptance of cryptocurrencies by top financial institutions and publicly traded firms, including Fidelity, Goldman Sachs, Citi Group, and BlackRock, which offer customers the ability to trade and store cryptocurrencies on their platforms.
A number of crises, bankruptcies, and market turbulence in 2022 may have made the future of Bitcoin and other cryptocurrencies appear quite bleak, according to Cryptomind Research's Investment Outlook 2023. However, those incidents were able to close the loopholes in the ecosystem, strengthening the sector as a whole.
Meanwhile, Ric Edelman, founder of the Digital Assets Council of Financial Professionals, forecast that by the end of 2022, more than 500 million people worldwide will own Bitcoin. Flori Marquez, co-founder of BlockFi and CoinTelegraph, agrees, crediting regulatory clarity and improved industry understanding for driving greater adoption.
According to CoinGecko, the market cap of Bitcoin (BTC) is US$534 billion as of May 10th, 2023, representing a Bitcoin dominance of 45.1%. Meanwhile, Stablecoins have a market cap of $131 billion, accounting for 11.09% of the total crypto market cap.
All of these developments support Xapo Bank's decision to become the world's first bank to integrate stablecoins such as USDC as a payment rail into and out of customers' US dollar bank accounts.
"Stablecoins are payment and value units in the web3 and crypto markets ecosystem. A secure payments channel on a modern blockchain network, into and out of your 'classic' interest-bearing USD Bank account," Xapo Bank noted, adding that it allows members to hold Bitcoin only as a form of cryptocurrency because it believes it is the most secure and trusted cryptocurrency.
Everyone should diversify their assets through investments, and digital assets such as Bitcoin could be one of the alternative options for customers, according to the bank.
Another encouraging sign for the cryptocurrency industry is the advancement of national and international regulatory standards by G7 and G20 economies, including the United States, France, Canada, Japan, and China.
According to experts, cryptocurrency regulation is expected to be carefully clarified on the legal "grey zone" of the ecosystem, which is a positive sign for cryptos like Bitcoin and its increasing significance in the world.
Some experts and analysts said digital assets are worth investing in because of the global economy's paradigm shift to the digital economy, where decentralised concepts have become practical, making digital assets appealing to own or hold.
However, it is advised to exercise caution when considering purchasing a cryptocurrency due to the risks involved. According to experts, choosing a legitimate, trustworthy provider of virtual assets is one way to interact with the market safely.
Members of Xapo Bank enjoy the freedom of knowing that their wealth is safe, have instant access to US dollars, can immediately buy and sell Bitcoin, and exchange USDC (the digital form of the US dollar) to dollars instantly in the most secure and safe way possible, with no fees charged, the bank's statement noted.
According to Xapo Bank, its top priority is to protect its members' assets. The bank is headquartered in Gibraltar, a trusted financial jurisdiction that adheres to EU and UK laws and regulations. The Gibraltar Deposit Guarantee Scheme* secures its members' US Dollar deposits up to the equivalent of $100,000. It also boasts a strong balance sheet, one of the most secure options for Bitcoin storage and world-class leading expert teams in banking and digital assets regulation. All of which are in place to provide unrivalled protection for its members' deposits.
In addition, Xapo Bank also has secure entry and exit points to its fully regulated Virtual Asset Service Provider, which allows for the safe and immediate transfer of Bitcoin and USDC.
Besides, with USDC, users can use modern blockchain technology to execute stable coin transactions that are automatically converted and deposited into their USD bank account at no cost.
According to Xapo Bank, this is another first that combines the use of new technology with traditional banking services and allows access from virtual asset markets to customers' bank accounts.
Founded in 2013 by Wences Casares, the bank has a distributed workforce in over 40 countries worldwide, with the goal of protecting and increasing the wealth of members who consider themselves global citizens.
Xapo Bank operates through two entities that are licensed and regulated in Gibraltar, a rock-solid jurisdiction with a 300-year history of stability and UK standards of law and property rights protection. The Gibraltar Financial Services Commission regulates and supervises Xapo Bank and Xapo VASP.